Private Company Growth Crimped by Macro Issues, Higher Rates
- Lincoln report shows slower 2Q profit growth for small firms
- Lenders battle for top performers as M&A pipes stay clogged
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The growth of private companies slowed in the second quarter as they grappled with macroeconomic issues and tough financing conditions, according to a Lincoln Private Market Index report on Thursday.
The portion of companies posting adjusted annual profit growth decreased as slower revenue growth “seeped down” into the bottom line, the report said. At the same time, higher interest rates and backers becoming more selective about which companies they’ll fund harmed the private sector’s ability to fuel growth.